India to retain top spot in remittances with $80 bn in 2018: World Bank

India will retain its position as the world’s top recipient of remittances this year with its diaspora sending $80 billion back home, the World Bank said in a report on Saturday.

India is followed by China ($67 billion), Mexico and the Philippines ($34 billion each) and Egypt ($26 billion), according to the global lender.

The Bank estimates that officially recorded remittances to developing countries will increase by 10.8% to reach $528 billion in 2018, against a 7.8% growth in 2017.

Global remittances, which include flows to high-income countries, are projected to grow by 10.3% to $689 billion, it said.

Over the last three years, India registered a significant flow of remittances, from $62.7 billion in 2016 to $65.3 billion 2017. In 2017, remittances constituted 2.7% of India’s GDP,

Remittances to South Asia are projected to increase by 13.5% to $132 billion in 2018, a stronger pace than the 5.7% growth seen in 2017.

The upsurge is driven by stronger economic conditions in advanced economies, particularly the US, and the increase in oil prices having a positive impact on outflows from some GCC countries such as the UAE, which reported a 13% growth in outflows for the first half of 2018.

Bangladesh and Pakistan experienced strong upticks of 17.9% and 6.2% in 2018, respectively, the Bank said.

For 2019, it is projected that remittances growth for the region will slow to 4.3% due to a moderation of growth in advanced economies, lower migration to the GCC and the benefits from the oil price spurt dissipating.

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India Development Foundation of Overseas Indians

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for closure of India Development Foundation of Overseas Indians (IDF-OI) to enhance synergies in channelizing Diaspora’s contributions to Government of India’s flagship programmes such as National Mission for clean Ganga and Swachh Bharat Mission.

Background:

  1. IDF-OI was set up by Government of India with the approval of Cabinet in 2008 as an autonomous not-for-profit Trust, to facilitate Overseas Indian philanthropy into social and development projects in India.
  2. As the Foundation received only Rs. 36.80 Lakhs between December 2008 and March 2015 as a donation from the overseas Indian community, a comprehensive review of IDF-OI was undertaken in 2015. Promotion of Government of India’s Flagship programmes – National Mission for Clean Ganga and Swachh Bharat Mission; and Social and Development projects identified by State Governments – was added to the mandate of IDF-OI.
  3. Although between April 2015 and March 2018, the Trust received Rs.10.16 crore, most of the contribution received were for either project related to National Mission for Clean Ganga or Swachh Bharat Mission, which are separately administered by their respective Administrative Agencies. In order to enhance synergies, improve efficiencies and avoid duplication of work, it was decided by the 9th Meeting of Board of Trustees of the IDF-OI that the Trust would be closed down by March 31, 2018.
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